National wants to break up the big supermarkets to lower prices

National says it will separate Pak'nSave from New World to lower food prices. The plan needs a six-month check by the Commerce Commission, the watchdog for fair competition, according to RNZ.

National announced the idea on the morning of Wednesday, 16 September, with little warning. It is a key part of its election pitch, according to Farmers Weekly.

The plan focuses on Foodstuffs, which owns Pak'nSave, New World and Four Square. It would split ownership, like turning one team into two rival teams. NZ First has a similar policy to split Foodstuffs, according to 1News.

NZ First leader Winston Peters mocked the announcement. He played part of the 1955 song "The Great Pretender" to reporters on his phone.

Peters said National had "cut and pasted" NZ First's plan to break up the supermarket duopoly, where two big owners run most stores. He said NZ First announced its plan in April. He said National acted "far too late" to make a difference this term.

ACT also criticised the idea. The party called it "desperate and visionless" campaigning. Leader David Seymour said the "heavy-handed intervention" would scare off investment and stop new supermarkets starting up.

Labour acted on the same day. It promised to stop big companies charging too much, according to Farmers Weekly.

The broader context here is how the coalition partners get on. National backs a break-up, while its two support partners oppose the idea and the timing. A six-month check means any decision comes after the election, during talks to form a government.

In my view, the politics are as important as the detail. Peters says the idea was his and National is late. Seymour says interference will keep new shops out. Labour wants price rules, not a break-up. Voters will hear three different plans to lower prices.